Investment Objective

Provide capital growth for the Members by investing in a globally diversified manner. The Core Accumulation Fund, through its underlying investments, will hold 60 per cent of its net assets in Higher Risk Assets (generally means equities or similar investments), with the remainder investing in Lower Risk Assets (including without limitation global bonds and money market instruments). The asset allocation to Higher Risk Assets may vary between 55 per cent and 65 per cent due to differing price movements of various equity and bond markets.

Fund Details

Latest Fund Expense Ratio: 0.77%

Launch Date(dd/mm/yyyy): 01/12/2000

Unit Price: HKD 17.27

Fund Size: HKD 3099.25M

Fund Commentary

Markets have been extremely volatile over the quarter as it became clear that the coronavirus disease (COVID-19) was going to cause severe economic dislocation. Forecasters have struggled to revise their projections fast enough to keep pace with the unfolding economic scenario. Policy makers have been quick to act to try to offset some of the damage, and both fiscal and monetary stimulus has been implemented globally. Against this background, stock markets sold off and government bonds returned positively against dramatically lowered interest rates. The fund ended in the negative territory over the quarter amid the COVID-19 outbreak which impacted investor sentiment resulting in major stock market sell-off. The main detraction came from the global equity sleeve. In particular, our tactical allocation to Japanese equities was unfavorable. On the fixed income side, government bonds returned positively offsetting part of the negative return from the equity side as US treasury yields lowered over the quarter. Asian Local Currency bonds returned unfavorably as major Asian local currencies depreciated against the Hong Kong dollar.

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